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Friday, January 14, 2011

50sma bounce trade

Here is another classic 50sma trade that happened while i was giving a lesson to my cousin sitting next to me.

Price had fallen down to 31 and moved about 25 pips away from the 50sma. Then the price started moving right back towards it, we know from earlier that the price had found support at the 56 area, which is where the 50sma was intersecting plus i started getting YELLOW for ob, so SHORT!!!

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